In some parts of america, the everyday homeowner pays over $10,000 per 12 months in property taxes — but there are only as many places where the median tax bill is under $300 annually.
Property taxes are charged on the local and state level, but local property taxes are likely to be higher as they fund schools, police departments and other agencies. Subsequently, the places within the U.S. with the bottom median property tax bills are likely to be counties with a mixture of low local tax rates and lower home values.
Lower property taxes levied by a state government may also help minimize a resident’s property tax bill, but there are some counties that rank in the highest 20 for lowest property taxes despite being in states with above-average state-level taxes.
For instance, residents of several counties in Alaska pay lower than $200 in property taxes per 12 months although the state had the sixteenth highest effective property tax rate (1.07%) in 2022, based on a latest report from the Tax Foundation, a nonpartisan tax policy nonprofit.
Nationwide, the typical household’s property taxes in 2022 were $1,815. In accordance with a separate report, property taxes increased roughly 26% from 2019 to 2023, largely because of rising home values.
Some homeowners pay little in property taxes
Ultra-low property taxes can offer a pleasant break for homeowners, but when an area government lacks funding it might struggle to perform all its functions at a high level.
“While no taxpayers in high-tax jurisdictions shall be celebrating their yearly payments, it’s value noting that property taxes are largely rooted within the profit principle of taxation: The people paying the property tax bills are most frequently those benefiting from the services,” the Tax Foundation wrote in its report.
As an example, homeowners in an area with higher property taxes might tolerate the expense if it leads to well-funded public schools.
However, government waste or municipal debt may also drive up property taxes, which is something homeowners should want to consider after they’re selecting where to live.
U.S. counties with the bottom property taxes
The counties that rank among the many lowest for property taxes come from just five states: Alabama, Alaska, Louisiana, North Dakota and West Virginia. Most of the counties are rural, and plenty of of them have lower home values and lower median household incomes than other places do. All have median property tax bills under $300.
Listed below are the 20 counties with the bottom property taxes, based on the Tax Foundation:
- Copper River Census Area, Alaska
- Kusilvak Census Area, Alaska
- Northwest Arctic Borough, Alaska
- Avoyelles Parish, Louisiana
- East Carroll Parish, Louisiana
- West Carroll Parish, Louisiana
- Madison Parish, Louisiana
- Choctaw County, Alabama
- Bienville Parish, Louisiana
- Allen Parish, Louisiana
- Lamar County, Alabama
- Tensas Parish, Louisiana
- Catahoula Parish, Louisiana
- Perry County, Alabama
- Wilcox County, Alabama
- Sioux County, North Dakota
- McDowell County, West Virginia
- Sumter County, Alabama
- Coosa County, Alabama
- East Feliciana Parish, Louisiana
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